Security Bank readies dollar bond issuance

SECURITY Bank Corp. on Monday began a series of fixed income investor meetings for a possible offering of Regulation S dollar-denominated senior unsecured notes, it said on Monday.

The lender has mandated MUFG and UBS as the joint global coordinators to arrange the meetings for the potential issue, along with Standard Chartered Bank and SB Capital as joint bookrunners, Security Bank said in a disclosure to the local bourse.

“A Regulation S offering of US dollar-denominated senior unsecured notes… may follow, subject to market conditions,” it said.

“The notes are expected to be rated Baa2 by Moody’s,” Security Bank added.

The bonds will be issued out of the bank’s $1-billion medium-term note program established on Aug. 29, 2018.

The bank’s most recent issuance under the program was made in September 2018, from which it raised $300 million from five-year notes.

Security Bank’s net income declined by 13.74% to P9.105 billion last year due to higher expenses and as it set aside more loan loss reserves.

Its shares closed unchanged at P70 each on Monday. — A.M.C. Sy